European Stocks Rebound From Biggest July Drop Amid EarningsBy
European stocks rose the most in a week, boosted by positive earnings reports, ahead of Thursday’s European Central Bank policy decision.
The Stoxx Europe 600 Index climbed 0.8 percent at the close, after sliding 1.1 percent Tuesday. ASML Holding NV helped technology shares rebound, rising 5.8 percent after it won orders for its latest lithography machines and forecast third-quarter sales above analyst estimates.
The euro area’s equities and currency are moving in opposite directions for the first time since early May, restoring a relationship that puts the region’s exporters in the crosshairs, just ahead of the ECB’s July meeting.
- Among other shares active on earnings reports:
- Electrolux AB advanced 3 percent after raising its growth outlook in North America as second-quarter profit and revenue beat projections.
- RPC Group Plc, Ubisoft Entertainment SA and Tele2 AB rose 4.5 percent or more after reporting results.
- Reckitt Benckiser Group Plc gained 1.6 percent after McCormick & Co. agreed to buy its food business for $4.2 billion.
- Investors will focus on ECB President Mario Draghi’s press conference tomorrow for clues on the timing of policy change, with economists predicting that officials will probably wait until September before slowing the pace of bond buying.
- “Markets are now betting it is only a matter of when the ECB starts preparing the ground for a slow retreat from its stimulus program,” Michael Hewson, a market analyst at CMC Markets in London, wrote in a note. “Draghi will certainly have his work cut out in keeping a lid on the euro at this rate.”
— With assistance by Namitha Jagadeesh, and Elena Popina